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Indirect 401(k) Rollover to a Traditional IRA
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March 22nd, 2010Retirement, Retirement 2050Spring 2010 Financial Goals
2. Roll over 401(k) from my holiday job to a Roth or transfer it to my brokerage
One of my Spring financial goals included rolling over the 401(k) I contributed to during my holiday job this past Christmas break. I contributed 50% of my paycheck which was a grand whopping total of $527.00! I was planning to do a direct rollover but since I was no longer an employee and my funds were less than $1k the Big Box Retailer, my former employer, closed out my 401(k) and cut me the check in February.
Since the check was in my name, I could no longer do a direct roll over and opted to do an indirect roll over. This constituted of me opening a traditional IRA account with my broker/dealer and depositing the check with them within 60 days. So, I opened an account on Friday and this morning I went over and deposited my whopping $527 in the IRA. The IRA had a minimum of $500 and I was so glad to have had enough to meet the minimum and continue to put that money towards retirement. Although it is a very tiny amount, I am sure my $527 will grow mighty in 30+ years!
Tags: 401(k) indirect rollover, 401(k) rollover, Traditional IRA
4 responses to “Indirect 401(k) Rollover to a Traditional IRA” 
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Hey, it’s a start
I’m sure you’ll be adding some friends to the party soon enough!
Don@Moneyreasons´s last blog ..What I Have Learned To Date From Blogging!
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Jane, you are already ahead of the game even with $527!
Investing Newbie´s last blog ..The Secret [Raise] -
$527 will for sure grow in 30+ years.
I hope you didn’t get taxed for the check cut out to you since it’s under $1000. You might need to report this in next year’s tax return.
Just a thought. =)
moneyhoneysf´s last blog ..Costco Auto Program -
@Money Reasons
I sure hope to have more friends join in on the party!@InvestingNewbie
Thanks, I don’t know how ahead I am but its good be $527 ahead. @MoneyHoney
No, the Big Box Retailer did not take out the money. Since I depsited within the 60 day period, I do not expect to be taxed but I am sure I will have to report it in some way.
Don@Moneyreasons March 22nd, 2010 at 19:53